1 in 5 People Would Buy Their First iPad if The Price Was Right
According to a new survey from RBC Capital Markets, a substantive number of current non-iPad owners would plunk down the cash and pony up for an Apple tablet if, for example, the price was right.
Based on the findings of the survey, 20% of respondents would purchase an iPad 2 (entry level model) if the price were lowered from $499 to $399. That $100 price break would generate a substantial buying wave from those who have, until now, held off on purchasing the market leading tablet.
Fortunately for this ripe market segment, Apple may take their advice after the iPad 3 is released early next month.
“Similar to Apple’s strategy for iPhone, Apple may simultaneously lower the price of the iPad2 by $100 (to starting at $399),” says RBC analyst Mike Abramsky. “Lower iPad 2 pricing may expand Apple’s addressable market and head off lower priced competitors.”
Chief among those "lower priced competitors" is the Amazon Kindle Fire, which is priced at $199. If the iPad 2 can somehow close the price gap between the Kindle Fire, there could be a huge wave of iPad 2 purchases throughout 2012 (just as the iPhone 4 remained the second-bestselling smartphone behind the iPhone 4S last year).